Crescent Point Energy to acquire additional Kaybob Duvernay assets for $375M

Crescent Point Energy announced it has entered into an agreement to acquire additional Kaybob Duvernay assets and is increasing its base dividend. Crescent Point has entered into a purchase and sale agreement to acquire certain Kaybob Duvernay assets from Paramount Resources for cash consideration of $375M. These assets are adjacent to Crescent Point’s existing land base and further enhance the company’s scale, high-return drilling inventory and development opportunities within the basin. This acquisition will be funded through existing credit facilities and is expected to close during January 2023. The assets include approximately 130 net drilling locations across nearly 65,000 net acres of crown land with no expiries. The acquired assets currently produce over 4,000 boe/d and include a gas plant, associated pipelines, water infrastructure and seismic data. Crescent Point plans to grow its Kaybob Duvernay asset from approximately 35,000 boe/d in 2022 to over 55,000 boe/d within its five-year plan. The significant inventory depth this asset provides also underpins the company’s 10-year plan. Crescent Point’s disciplined development program includes adding a second rig in the Kaybob Duvernay in 2024. Crescent Point is currently drilling its seventh pad in the play and expects to bring its sixth fully operated pad on-stream in early 2023. The company’s fourth and fifth fully operated multi-well pads were recently brought on-stream and are generating strong initial production results that are in-line with, or ahead of, its internal type wells. Average IP rates for the fourth and fifth pads are approximately 785 boe/d per well and approximately 950 boe/d per well, respectively. The company has also successfully lowered drilling days to between 11 to 13 days per well on its recent pads, a reduction of over 40 percent since entering the play. Crescent Point continues to seek opportunities to further enhance returns and overall recoveries through additional efficiencies and optimization of its drilling and completions design.